TCS Shares Jump 5.2% After Q2 Results as All Nifty IT Stocks Rally

Mumbai | 9 October 2026 

Tata Consultancy Services (TCS) shares traded 5.20% higher at ₹2,183.90 on the National Stock Exchange (NSE) at 11:25 am on Friday. The stock touched a day high of ₹2,204.00. On BSE, it rose 5.25% to ₹2,184.10. The rally followed the company’s results for the second quarter of the 2026-27 financial year (Q2 FY27). 

What Did TCS Report for Q2 FY27? 

TCS reported consolidated net profit of ₹13,884 crore for the September quarter. This was 4% higher than ₹13,349 crore in the first quarter (Q1). Excluding an exceptional loss in Q1, profit rose marginally from ₹13,849 crore. Revenue from operations rose 1.3% quarter on quarter to ₹73,188 crore. 

Within these results, growth came from several sectors. 

• Constant currency (CC) figures remove the effect of exchange rate changes. In CC terms, revenue grew 0.5% quarter on quarter and international business grew 1.2%. 

• Manufacturing, and technology and services, grew 3.1% each in CC terms. Banking, financial services and insurance (BFSI) grew 2.5%. 

• Annualised AI revenue rose 19.2% from $2.6 billion in Q1 and crossed 10% of total revenue. 

• Revenue grew 11.2% year on year. 

• The company added 4.3 thousand employees during the quarter, and attrition fell 30 basis points. 

Why Did TCS Margins Stay Flat? 

Operating margin held at 24% for a second straight quarter. PL Capital Research notes that investments in AI capabilities, strategic partnerships and acquisitions weighed on profitability. Higher subcontracting costs added to the pressure. Gains from currency movements and operating efficiency partly offset these costs. 

Subcontracting costs rose to 6.8% of revenue in Q2, from 5.9% in Q1. 

For a detailed analysis of TCS’s Q2 FY27 performance & margin trends read the PL Capital Research report on TCS Q2 FY27 results 

How Did Other IT Stocks Perform? 

The Nifty IT index rose 3.39% to 28,675.65 and was the top sectoral gainer. All 10 of its stocks traded higher. At 11:25 am on the NSE, Infosys rose 2.59% to ₹1,022.85 and HCL Technologies gained 2.85% to ₹1,210.40. TCS, Infosys and Tech Mahindra were among the top Nifty 50 gainers. 

The broader market also recovered. At 10:20 am, the Sensex was up 740 points, or 1.03%, at 72,333.30. The Nifty 50 rose 243 points, or 1.09%, to 22,474.90. 

What Is the US PERM Suspension? 

The US government suspended several technology companies from its Permanent Labor Certification Program (PERM). The list includes TCS, Infosys, Wipro, Cognizant and HCL. The suspension follows investigations into alleged visa fraud and employment practices. TCS said on Friday that the move is unlikely to affect its workforce strategy or customer engagements. 

The company said its PERM applications had been in single digits over the past two years. 

Outlook 

Management shared the following plans and expectations. 

• TCS plans to hire an additional 15,000 employees in the US over the next five years. 

• Management kept its long-term margin goal of 26% unchanged. In the near term, it will prioritise investments that strengthen competitiveness. 

• Management expects the consumer segment to recover in the third quarter, supported by seasonal demand. 

• The demand environment has not changed materially since last quarter. Discretionary programmes without near-term value remain under review. 

Stay updated on Indian and global equity and commodity markets on PL Capital. 

Disclaimer: Investments in securities market are subject to market risks, read all the related documents carefully before investing.

This is a knowledge-sharing initiative by PL Capital. The information provided is only for educational purposes and should not be considered as financial advice & has no influence on the investment/trading decisions of any investors.

For detailed disclaimers/disclosure and Mandatory terms and conditions please visit our website https://www.plindia.com/regulatory-content/